BIR Ruling

April 16, 1974 Mr. George R. Brosius Lutheran Service Center 1648 Rizal Avenue Olongapo City, R.P. S i r : This has reference to your letter dated October 12, 1973, stating that you are a citizen of the United States; that the Lutheran Church in American appointed you to serve in the Philippines as Field Service Pastor exclusively to the men and women of the Armed Forces of the United States stationed in the Philippines; that while in your station you receive no monetary compensation other than those deposited in your own account in the United States; and that you receive only housing and transportation allowance. On the facts stated above, you now seek a ruling from this Office as to whether or not you are exempt from the filing of income tax returns and the payment of income tax. acd In reply, I have the honor to inform you that the pastoral service you rendered and are rendering in the Philippines to the men and women of US Armed Forces for which an amount has been deposited to your account in the United States plus the value of the housing and transportation allowances supplied in your favor is subject to Philippine income tax and, therefore, you are required to file income tax returns in the place where you reside and has been rendering pastoral service. cd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."